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Japan tightens trade restrictions for South Korea

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Japan tightens trade restrictions for South Korea
August 02
15:00 2019

Japan has removed South Korea from the list of states which are under minimum restrictions. Seoul will no longer be entitled to simplified export controls. Changes will take effect at the end of the month.

In response to such a decision, South Korea said that such actions would undermine the trade relations of the countries that had been developing over 10 years.

ASEAN forum will be held on Friday. During it, the ministers of both countries, together with the US representative Mike Pompeo, will discuss the main points of the dispute.

Pompeo is expected to take a position to contain tensions between the countries. He will call on the parties to take joint efforts towards Pyongyang and maintain security and stability on the peninsula.

Earlier, the States said they would fully contribute to resolving the conflict between Japan and South Korea. Meanwhile, Tokyo believes that Seoul’s actions have undermined confidence and even more – they aimed to create negative sentiments towards Japan inside the country.

Due to the complexity of export procedures, Korean chip and display manufacturers may suffer.  Japanese representatives say that South Korea’s non-compliance with sanctions against North Korea was one of the reasons for taking such measures. 

Seoul has rejected all allegations, believing that tightened trade relations were just revenge. Last year, the Supreme Court ruled that Japanese companies should pay compensation to the victims of the colonization of the Korean Peninsula (1910-1945).

Tokyo considers the decision unreasonable, because according to the 1965 treaty, Japan has paid compensation to South Korea in the amount of $ 500 million. The money did not reach the citizens, and now they are trying to right a wrong in court.

 

The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group

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